Synthetix and Derive Cancel $27M Merger Plan Amid Community Pushback

A proposed $27 million merger between decentralized finance (DeFi) platforms Synthetix and Derive has been officially called off. The decision comes after critical community feedback and internal reassessments led both parties to mutually withdraw the acquisition proposals.

Initially announced in mid-May, the deal outlined a plan for Synthetix to acquire Derive’s treasury, technology, and product suite through a token swap—aiming to unify their operations into a single derivatives platform on Ethereum. The proposal, formalized through Synthetix Improvement Proposal 415 (SIP-415) and Derive Improvement Proposal (DIP), would have seen 29.3 million new SNX tokens minted to facilitate the acquisition.

The proposed swap valued Derive, formerly known as Lyra, at $27 million, offering Derive token holders a conversion rate of 27 DRV for every 1 SNX token. However, the valuation drew skepticism from Derive’s community, especially as the platform had recently outperformed Synthetix in revenue. Critics argued that Derive’s stronger financial performance made the $27 million price tag—and the significant dilution of SNX token supply—unjustifiable.

In a statement confirming the cancellation, Derive’s team said the decision followed “thoughtful discussion and community feedback,” signaling that governance and open dialogue remain key to both projects’ roadmaps.

Synthetix had hoped to leverage Derive’s capabilities to support its upcoming Perps V4 product, a decentralized derivatives platform offering a centralized-style limit order book on Ethereum. Despite the breakdown of the merger, Synthetix will continue exploring other strategic opportunities to expand its ecosystem.

Derive, on the other hand, reaffirmed its commitment to maintaining an independent path. The platform emphasized that the experience has strengthened its resolve to build autonomously and align more closely with its community’s expectations.